Advanced Accountancy Volume II
Other books by the same authors published by Vikas Advanced Accountancy-Vol. I Ninth Revised & Enlarged Edition, 2009 For B.Com., M.Com., CA, CS & ICWA Examinations Problems and Solutions in Advanced Accountancy-Vol. I Sixth Revised & Enlarged Edition, 2007 Problems and Solutions in Advanced Accountancy-Vol. II Seventh Revised & Enlarged Edition, 2008 For B.Com., M.Com., MBA, CA, CS & ICWA Examinations An Introduction to Accountancy Tenth Revised & Enlarged Edition, 2009 For B.Com. (Pass), ICWA (Intermediate), CAIIB, BBA Examinations Corporate Accounting Fifth Revised & Enlarged Edition, 2009 Financial Accounting Fourth Edition, 2005 For B.Com., CA, CS & ICWA (Foundation Courses) Fundamentals of Accounting for CPT Second Revised Edition, 2009 Financial Accounting for BBA First Edition, 2009
Advanced Accountancy Volume II TENTH REVISED & ENLARGED EDITION Dr S N MAHESHWARI DIRECTOR GENERAL DELHI INSTITUTE OF ADVANCED STUDIES, DELHI-110085 (Formerly, Principal, Hindu College, Delhi University & Professor & Dean, Faculty of Commerce and Business Management, Goa University) Dr S K MAHESHWARI PROFESSOR DIVISION OF ACCOUNTANCY AND LEGAL ENVIRONMENT, MARSHALL UNIVERSITY, HUNTINGTON (WV), USA VIKAS VIKAS PUBLISHING HOUSE PVT LTD
VIKAS PUBLISHING HOUSE PVT LTD E-28, Sector-8, Noida-201301 (UP) India Phone: +91-120-4078900 Fax: +91-120-4078999 Registered Office: 576, Masjid Road, Jangpura, New Delhi-110014. India E-mail: helpline@vikaspublishing.com Website: www.vikaspublishing.com Ahmedabad : 305, Grand Monarch, 100 ft Shyamal Road, Near Seema Hall, Ahmedabad-380051 Ph. +91-79-65254204 Bengaluru : First Floor, N S Bhawan, 4th Cross, 4th Main, Gandhi Nagar, Bengaluru-560009 Ph. +91-80-22281254, 22204639 Chennai : E-12, Nelson Chambers, 115, Nelson Manickam Road, Aminjikarai, Chennai-600029 Ph. +91-44-23744547, 23746090 Hyderabad : Aashray Mansion, Flat-G (G.F.), 3-6-361/8, Street No. 20, Himayath Nagar, Hyderabad-500029 Ph. +91-40-23269992 Fax. +91-40-23269993 Kolkata : 6B, Rameshwar Shaw Road, Kolkata-700014 Ph. +91-33-22897888 Mumbai : 67/68, 3rd Floor, Aditya Industrial Estate, Chincholi Bunder, Behind Balaji International School & Evershine Mall, Malad (West), Mumbai-400064 Ph. +91-22-28772545, 28768301 Patna : Flat No. 101, Sri Ram Tower, Beside Chiraiyatand Over Bridge, Kankarbagh Main Rd., Kankarbagh, Patna-800020 Ph. +91-612-2351147 Advanced Accountancy (Volume-II) ISBN: 978-81259-3092-1 First Published 1984 Tenth Edition 2009 Reprinted several times First Reprint 2015 Vikas is the registered trademark of Vikas Publishing House Pvt Ltd Copyright Authors, 1984, 2009 All rights reserved. No part of this publication which is material protected by this copyright notice may be reproduced or transmitted or utilized or stored in any form or by any means now known or hereinafter invented, electronic, digital or mechanical, including photocopying, scanning, recording or by any information storage or retrieval system, without prior written permission from the publisher. Information contained in this book has been published by VIKAS Publishing House Pvt Ltd and has been obtained by its Authors from sources believed to be reliable and are correct to the best of their knowledge. However, the Publisher and its Authors shall in no event be liable for any errors, omissions or damages arising out of use of this information and specifically disclaim any implied warranties or merchantability or fitness for any particular use. Disputes if any are subject to Delhi Jurisdiction only. Printed in India.
To Aikansh, Sidharth, Saransh & Sneham With Love
Preface to the Tenth Edition We feel indeed privileged to place before the esteemed readers the Tenth Revised and Enlarged Edition of our book Advanced Accountancy Volume-II. The heart-warming response given by the readers to each new edition of the book is really a matter of great satisfaction and pleasure for us. The new edition, besides maintaining the PLUS features of the Ninth Edition, viz., simplicity of style, exhaustive text with plenty of illustrative material, helpful questions and problems for self-study, has certain additional welcome features. These include the following: The book now covers all the more exhaustively the course content requirements of students appearing at B.Com, M.Com and MBA examinations of different Indian universities and the examinations conducted by different professional institutes, viz., Institute of Chartered Accountants of India (ICAI), Institute of Company Secretaries of India (ICSI) and the Institute of Cost and Works Accountants of India (ICWAI). Since the publication of the last edition, a number of developments have taken place in the corporate accounting world, viz., Enactment of the Companies (Amendment) Act 2006 and amendments in Schedule VI to the Companies Act. Issue of Accounting Standard Interpretations for AS 7, AS 17, AS 18, AS 21, AS 22, AS 23, AS 25 and AS 29. Issue of three new Accounting Standards AS 30, AS 31 and AS 32. This has taken the total number of Accounting Standards, issued by the Institute of Chartered Accountants of India, to 32. Withdrawal of AS 15: Accounting for Retirement Benefits in the Financial Statements of Employers, w.e.f. December 6, 2006 and applicability of AS 15 (Revised 2005): Employee Benefits, w.e.f. December 7, 2007. Issue of Guidance notes on ESOP and decision of Institute of Chartered Accountants of India regarding convergence of Indian Accounting Standards with International Financial Reporting Standards w.e.f. April 01, 2011. Enactment of the Reserve Bank of India (Amendment) Act 2006 and the Banking Regulation (Amendment) Act 2007. Revision of norms regarding classification of advances and making provisions in case of banking companies. Enactment of The Finance Act, 2008. Amendment to Bonus Issue Guidelines by SEBI effective from Feb. 3, 2009. All these amendments have been incorporated at appropriate places in the book. Exhaustive illustrations and problems have been incorporated on Buy-back of Shares in the chapter Shares and Share Capital. Basic details of Accounting Standard 15 (Revised 2005) have been incorporated in the chapter Company Final Accounts.
Preface to the Tenth Edition viii The text matter in several chapters has been considerably strengthened. A new chapter on Accounting for Financial Instruments has been added in Section III of the book. This deals with Accounting for Equity index options and Equity stock options etc. keeping in view the requirements of CA Final students. Three new concepts Lean accounting, Forensic accounting and International accounting have been added in the Chapter Recent Developments in Accounting in Section III of the book. This is expected to create inquisitiveness among the students to learn more about these innovative modern concepts. The examination-oriented approach of the book has been further sharpened and enhanced. We are confident that with all these PLUS features the readers will find the revised edition of the book all the more useful and rewarding for them. Constructive and helpful suggestions for the improvement of the book will be gratefully acknowledged. A-2/156, Paschim Vihar New Delhi-110063 Dr S N Maheshwari Dr S K Maheshwari
Preface to the First Edition I am pleased to place before the esteemed readers the much awaited book Advanced Accountancy, Vol. II. The encouraging response to my books Advanced Accountancy, Vol. I and An Introduction to Accountancy, is a matter of great satisfaction and privilege for me. The delay in bringing out this volume was due to reasons beyond my control and I express my sincere apology to the esteemed readers for the inconvenience caused to them. Advanced Accountancy, Vol. II is a companion volume to the book Advanced Accountancy, Vol. I. It consists of three sections. Section 1 deals with general accounting principles applicable to Company Accounts. Here, topics such as Issue and Redemption of Shares and Debentures have been explained with complete clarity and simplicity of exposition. Section 2 explains preparation of Final Accounts relating to certain specific types of companies such as banking and insurance, besides simplifying in a lucid style the intricacies involved in the consolidation of accounts of a Group. Section 3 is meant to give the students a bird s eye view of Management Accounting a growing and challenging branch of accounting. Here, besides funds flow and cash flow analysis, popular topics such as financial statements analysis and inflation accounting have been explained. Throughout the development of the book, it has been my endeavour to tailor its approach, subject matter and presentation according to the requirements of its users mainly students. The language has been kept simple and the entire discussion has been built on a logical and coherent outline. Particular care has been taken to explain those complex and intricate points which really trouble students. The text matter is accompanied with adequate illustrative material and exhaustive working notes. At the end of each chapter unsolved problems with detailed answers have been given for recapitulation and better grasp of the subject. Questions from latest university and professional examinations have been incorporated to make the students familiar with the latest examinations trends. The book, thus in its present form, covers exhaustively the course contents of the students preparing for B.Com, M.Com, CA, ICWA and Company Secretaries examinations. Constructive and helpful suggestions for improvement in the book will be gratefully acknowledged. July, 1984 Dr S N Maheshwari
Contents Preface to the Tenth Edition Preface to the First Edition vii ix Section 1: Company Accounts 1. INTRODUCTORY 1.3 Learning Objectives 1.3 Introduction 1.3 Meaning and Definition of a Company 1.3 Essential Characteristics of a Company 1.4 Meaning of Corporate Accounting 1.4 Kinds of Companies 1.5 Formation of a Company 1.8 Allotment of Shares 1.12 Key Terms 1.13 Test Questions 1.13 2. SHARES AND SHARE CAPITAL 1.15 Learning Objectives 1.15 Shares 1.15 Share Capital 1.16 Accounting Entries 1.18 Undersubscription 1.24 Oversubscription 1.24 Calls in Advance 1.26 Calls in Arrears 1.27 Issue of Shares at Premium 1.28 Issue of Shares at Discount 1.31 Forfeiture of Shares 1.33 Surrender of Shares 1.40 Issue of Two Classes of Shares 1.46 Right Shares 1.50 Underwriting 1.52 Lien on Shares 1.57 Alteration of Share Capital 1.59 Creation of Reserve Capital 1.61 Buy-back of Shares 1.61 Redemption of Preference Shares 1.70 Key Terms 1.82 Test Questions 1.82 Practical Problems 1.84
Advanced Accountancy Vol-2 30% OFF Publisher : Vikas Publishing ISBN : 9788125930921 Author : S N Maheshwari And Suneel K Maheshwari Type the URL : http://www.kopykitab.com/product/5352 Get this ebook